May 6, 2010 -
PRLog -- The Resource Rent Tax (RRT) is not a new tax - it is already applied to the oil industry all around the world. The Australian Prime Minister, Kevin Rudd, had stirred up a lot of controversy regarding the resource rent tax proposal. Mining companies all over Australia are lobbying against the imposition of this new tax.The justification of course is that oil is used by everyone so its a great resource to tax at every stage of the production process. The utility of oil ensures that it is a relatively price inelastic good. Pity us that the mining industry are such poor victims. They could never identify the underlying principles. Like you, decades they abandoned ideology, and they dare not alienate themselves by justifying a label by government that they are 'ideologues'. Ouch! That hurt. The reality is that 'Big Business' is equally to blame for this state of affairs by mounting such a weak moral argument against taxation....in fact against the way government is structured. http://tax-
abuse.blogspot.com/
